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FG disagrees with OPEC on Nigeria’s crude oil production

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FG disagrees with OPEC on Nigeria’s crude oil production

The Federal Government has disagreed with the Organisation of Petroleum Exporting Countries (OPEC) on the country’s average daily crude oil production.

OPEC had put the Nigeria’s production at 1.32 million bpd in February 2024.

However, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the country’s oil production has risen to 1.65 million bpd.

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Speaking in Abuja on Wednesday at a podcast hosted by Bruit Costaud in collaboration with Ballard Partners of USA, Edun said that Nigeria’s oil production increased to 1.65 million bpd, from 1.25 million bpd in June 2023. He stated: “The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day.

“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.”

OPEC had in its monthly oil market report released yesterday, OPEC reported that Nigeria’s average daily crude oil production dropped to 1.32 million bpd in February. It stated that the oil output figure represents 105,000 bpd or 7.36 percent decrease from the 1.42 million bpd recorded in January.

OPEC said the production data was based on direct communication with Nigerian authorities.

OPEC receives data on crude oil production from two sources: direct communication — which is from members of the group; as well as s e c o n d a r y communication, such as energy intelligence platforms. With its current drilling performance, the country retained its position as the biggest oil producer in Africa.

OPEC said Libya is Africa’s second-largest producer, with 1.17 million barrels per day, followed by Algeria with 906,000 bpd. But OPEC’s secondary sources put Nigeria’s crude production at 1.476 million bpd — a 3.29 percent uptick from the 1.429 million bpd reported by the oil cartel in January this year.

“According to secondary sources, total OPEC-12 crude oil production averaged 26.57 mb/d in February 2024, 203 tb/d higher, mo- m. Crude oil output increased mainly in Libya and Nigeria, while production in IR Iran and Iraq decreased,” the report reads.

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